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Buying a house in Gainesville? Start here

Gainesville was placed first in the New York Times list of best cities to live in 2007. It is an idyllic city that is rich in history and a healthy mix of people and cultures. The city is part of the Alachua County and is the home of the University of Florida. The average prices are on a downward trend over the last quarter, so it is the right time to make use of the discounted home prices. Bundle that with an Earnest mortgage and buying a home in Gainesville has never been easier.
Tampa, Florida, USA downtown skyline.

Gainesville- attractive and affordable

University town with a vibrant population

Home of the Gators, Gainesville is a quite city that is nestled in the middle of the state of Florida. It is home to the University of Florida, 9th largest University in the country. It is a young city in that 47% of the population is single and the median age of the city is 33. That can be attributed to the many colleges and schools that plays and important part of the city's identity. The city is a perfectly located, sized and is not as famous as its neighboring cities, but is one that has been steadily growing under the radar. The developments in terms of infrastructure has also been gradual. The University is the city's largest employer and it reflects on its neighborhoods. The state of this city's economy is on an upward surge, making it the perfect place for young people and families to move to.
Tampa, Florida, USA downtown skyline.
Couple laying on a beach. Blue sky in the background.

Earnest makes buying a home in Gainesville easy

Low rates and an accelerated application process- get approved in no time

Home buying is one of the most important decisions that you will make. There might not be a second chance, so you need to get it right the first time. Go through multiple sites, make visits to the property and do not restrict yourself. The process is not meant to be quick or easy. What can be quick and easy on the other hand is the finance part. Getting a mortgage should not be difficult and at Earnest, we agree. Earnest has a process that is not reliant on the credit score alone. The forms and other paperwork is handled only online, making it paperless and that much more time saving.
Couple laying on a beach. Blue sky in the background.

Common Questions About Buying a Home in Gainesville

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

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The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.